Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $257,070 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 $ 11,600 $ 16,900 1,800 hours Job 102 $8,700 $ 6,200 2,000 hours Job 103 $ 5,900 $ 4,500 1,100 hours Total $ 26,200 $ 27,600 4,900 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,690. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the
upcoming year, the company estimated its total manufacturing overhead cost at $257,070 and total machine hours at 62,700. During
the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor
cost, and machine hours for each job:
Direct materials used
Direct labor
Machine hours
Job 101
11,600
$
$ 16,900
1,800 hours
Job 102
$ 8,700
$ 6,200
2,000 hours
Job 103
$ 5,900
$ 4,500
1,100 hours
Total
$ 26,200
$ 27,600
4,900 hours
Job 101 was completed and sold for $50,800.
Job 102 was completed but not sold.
Job 103 is still in process.
Actual overhead costs recorded during the first month of operations totaled $15,690.
Required:
1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.
2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101.
3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round
your intermediate calculations.
Transcribed Image Text:Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $257,070 and total machine hours at 62,700. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Direct materials used Direct labor Machine hours Job 101 11,600 $ $ 16,900 1,800 hours Job 102 $ 8,700 $ 6,200 2,000 hours Job 103 $ 5,900 $ 4,500 1,100 hours Total $ 26,200 $ 27,600 4,900 hours Job 101 was completed and sold for $50,800. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $15,690. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round your intermediate calculations.
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